Golden Cross

. . 2 comments:
Indian stock markets are set to enter next BULL phase. Reason is NSE nifty has formed a golden cross today 13th march 2012. A golden cross indicates a long term bull phase. when 50 day SMA moves above 200 day SMA, the phenomena is called golden cross. It doesn't mean market will move up in a straight line but the long term outlook would be bullish. We can expect our markets to once again cross 6000 levels in this phase.

2 comments:

  1. Golden cross to be effective has to have 50day SMA crossing 200day SMA at a steep angle. This is not so at present. It crossed in March 2011 at a shallow angle which resulted in the rally fizzling out in April 2011 at around 5900. Therefore, current weak golden cross will be tested in next 2-3 months and only if 50day SMA manages to stay above 200day SMA on weekly closing charts can a Bull phase be confirmed for next 1-2 years.

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    1. in March 2011 the formation is Death cross, its not golden cross. death cross forms when 50 dma crosses 200 dma from above.

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